Hi Mr Moffat
Q69 - CMC, what would be the rates after the swaps for CMC and the counterparty. I understand up to the calculation of the shared benefit of .60. But I don't understand how to get the rate for each company after the swap. Is it for CMC :-
Floating rate (since it was fixed at start) - .80
Less bank fees -.20
Add benefit -.60
Thanks,
Marie
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swaps
10y ago#1You write 'Q69' but you do not say which book you are referring to :-)
I assume you mean the question from the June 2014 exam, in which case I have recorded a lecture working through the whole of this question.
You can find it linked from this page:
https://opentuition.com/acca/afm/afm-revision-lectures/
It should answer your question :-)
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